In a strategic move towards expanding its electric vehicle lineup, Volkswagen is targeting the launch of an entry-level electric car by 2027. The VW brand chief, Thomas Schaefer, revealed this plan during a recent group presentation, where a prototype of the potential vehicle, currently known as ID.1, was showcased. Four project teams are actively developing proposals for this anticipated model, with the goal of making it available to customers by 2027.
As part of its broader electric vehicle strategy, Volkswagen aims to introduce 11 new electric models under the Volkswagen brand in the next three years. Among these, the ID.2, slated for release in 2026 at an approximate price point of 25,000 euros, has already been announced. Additionally, Volkswagen is collaborating with Chinese manufacturer Xpeng to develop models specifically tailored for the Chinese market, showcasing the brand's commitment to global electrification efforts.
The decision on the production of an entry-level electric vehicle priced around 20,000 euros is pending, with VW Group Chief Executive Oliver Blume indicating that a conclusive choice will be made this year. Exploring various conceptual solutions and potential partnerships, Volkswagen is strategically positioning itself to offer a more affordable electric vehicle option to a wider audience.
This initiative aligns with Volkswagen's overarching cost-saving strategy, which involves a 10 billion euro cost-cutting plan aimed at streamlining operations within the brand. The brand's focus on operational efficiency and collaboration among its core mass-market brands, including Volkswagen, Volkswagen Commercial Vehicles, Skoda, and SEAT/CUPRA, led to an impressive 80% increase in operating profit last year, totaling 7.3 billion euros.
The success of this collaborative approach has not gone unnoticed, with Schaefer highlighting the positive impact on competitiveness and innovation for customers worldwide. Looking ahead, Volkswagen anticipates further enhancements in its financial performance this year, driven by closer inter-brand cooperation, improved supply chains for raw materials and components, and the anticipated market expansion through the introduction of new electric vehicle models.